PNB Q3 Results: Profit aided by other income, write-back; asset quality improves

Net Interest Income (NII) or core income of the bank grew by 7.2% on a year-on-year to ₹11,033 crore, from ₹10,293 crore last year.

Net profit for the period stood at ₹4,508 crore, in comparison to ₹2,222 crore that the lender reported during the year-ago quarter. The net profit was aided by jump in other income, which stood at ₹3,411 crore from ₹2,673 crore last year.

There was also a provision write-back of ₹285 crore during the quarter, in comparison to the provision of ₹288 crore in the September quarter. Against NPAs, provisions stood at ₹317 crore from ₹199 crore last quarter.
PNB’s asset quality improved on a sequential basis. Gross NPA stood at 4.09% from 4.48% in the previous quarter, while net NPA stood at 0.41% from 0.46% last quarter.Advances growth during the quarter increased by 15.6% from last year and 4.9% from the previous quarter to ₹15.29 lakh crore, while deposits stood at ₹10.69 lakh crore, a growth of 16.75% from last year and 5% of the previous quarter.

Credit-deposit ratio during the quarter stood at 69.95% from 69.24% last year and 69.91% in September.

Provision coverage ratio during the quarter stood at 96.8% from 96.7% in the previous quarter.

Operating profit during the quarter stood at ₹6,620 crore, growing by 4.6% from last year. However, the figure was down 3.4% on a sequential basis.

Shares of PNB are trading 4.5% higher post the earnings announcement at ₹100.84.